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Settlement Agreement — Word & PDF Template
A UK employment settlement agreement recording termination payments, waiver of claims, confidentiality and an independent adviser's certificate, one of the conditions for the waiver to be effective.
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This Settlement Agreement is used to end the employment relationship on agreed terms, with the employee waiving claims in return for a settlement payment. It records the payments, confidentiality and continuing obligations, and includes the independent adviser’s certificate, which is one of the statutory conditions for the waiver of employment claims to be effective. The agreement must also be in writing, identify the claims waived and be signed after the employee has taken advice.
Who is this template for?
It is designed for employers and employees agreeing an exit, whether on redundancy, a negotiated departure or to settle a dispute. The employee must take independent legal advice for the agreement to be effective, and the template provides for that.
What does the template include?
The agreement is fully structured and covers the main terms of a settlement agreement:
- Parties — the employer and the employee.
- Background — context and reason for the agreement.
- Termination Payments — ex gratia payment (with the tax-free threshold noted), notice pay, accrued holiday pay, an agreed reference and a legal fees contribution. The agreed reference itself is for you to attach as a schedule.
- Timing of Payments — when payments will be made.
- Employee Warranties — the employee’s confirmations.
- Waiver and Full and Final Settlement — the claims being waived.
- Independent Legal Advice — the requirement to take advice.
- Confidentiality — keeping terms confidential, with carve-outs for protected disclosures and reports to regulators.
- Continuing Obligations — obligations that survive termination.
- Governing Law and Jurisdiction — England and Wales jurisdiction.
- Adviser’s Certificate — certificate confirming advice was given.
- Signatures — execution by both parties.
Easy to customise
The template works in Microsoft Word, Google Docs and LibreOffice. Simply fill in the highlighted fields, tick the relevant checkboxes and edit any clauses to suit your arrangement. No special software is required.
Format and scope
The document downloads as an editable Word (.docx) file and a printable PDF, formatted to A4. It is drafted for use in England and Wales with light, general legal references.
How to edit the template
- Download the DOCX file after purchase
- Open it in Word, Google Docs, LibreOffice or another DOCX editor
- Fill in the parties' details in the marked fields
- Edit the terms and text to match what has been agreed
- Print it for signing or send it digitally
